Small Business Owners Sue IRS Over ObamaCare

Blog of the Legal Times:  Small Business Owners Sue IRS Over Obamacare:

Objecting to what they term an "Obamacare power grab," a group of small business owners and individuals in six states filed suit today against the IRS over a rule that expands health insurance subsidies.

The plaintiffs say the IRS regulations "actually serve to financially injure and restrict [their] economic choices" and are arbitrary and capricious, according to the complaint filed in U.S. District Court for the District of Columbia by Jones Day partner Michael Carvin, who co-argued the U.S. Supreme Court cases challenging the Affordable Care Act in March 2012.

The suit against the IRS focuses on health care exchanges - state-level clearinghouses that are supposed to make it easier for people to buy insurance. The federal government doesn’t have the power to force states to set up such exchanges, but the law provides incentives for them to do so.

• The Hill, Lawsuit Accuses IRS of 'Flagrantly Illegal' Actions in Rollout of ObamaCare 
• Human Events, Business Owners Sue IRS Over ObamaCare Employer Mandate
• Reuters, Healthcare Law Opponents Sue Obama Officials Over IRS Rules
• Wall Street Journal, Obamacare Gets New Court Challenge